Jainex Aamcol Q2 Results: Net profit falls 8.5% QoQ to ₹47.87 lakh

Jainex Aamcol Limited reported a net profit of ₹47.87 lakh for the second quarter of fiscal year 2026 (Q2FY26), down from ₹52.31 lakh in the preceding quarter. The company’s revenue from operations increased 15.6% year-on-year to ₹753.02 lakh, compared to ₹651.35 lakh in Q2FY25. The Board of Directors approved the unaudited standalone results on August 07, 2026, following a review by the Audit Committee.

The quarterly performance was characterized by stable top-line growth but pressured margins due to higher operational costs. While net sales grew significantly compared to the same period last year, total expenses rose to ₹105.06 lakh from ₹95.46 lakh in Q2FY25. Finance costs remained a significant burden at ₹201.63 lakh, up from ₹184.62 lakh in the prior year period. The statutory auditor, R K Jagetiya & Co, issued an unmodified opinion on the financial statements.

Financial Performance Overview

Jainex Aamcol’s profitability metrics show a slight contraction in efficiency during the quarter. The operating margin stood at 15.63%, down from 16.85% in Q1FY26 and 14.36% in Q2FY25. Net profit margin decreased to 6.36% from 6.77% in the previous quarter and 6.89% in the corresponding quarter of the previous fiscal year.

Metric	Q2FY26 (₹ in Lakhs)	Q1FY26 (₹ in Lakhs)	Q2FY25 (₹ in Lakhs)
Revenue from Operations	753.02	772.32	651.35
Total Expenses	105.06	123.42	95.46
Profit Before Tax	63.12	58.39	62.34
Net Profit	47.87	52.31	44.89
Earnings Per Share (Basic)	₹2.13	₹3.03	₹3.00

The company recorded exceptional items of ₹63.12 lakh in Q2FY26, which contributed to the profit before tax figure. In contrast, the profit before exceptional items and tax was ₹694.85 lakh, indicating that the core operational profitability remains robust despite the inclusion of these specific items in the final PBT calculation as per the filing structure.

Balance Sheet and Ratios

The company’s debt profile saw changes during the quarter. Total borrowings increased to ₹1,469.40 lakh from ₹782.24 lakh in Q1FY26, leading to a rise in the debt-equity ratio to 0.83 times from 0.45 times. However, this remains lower than the 1.53 times recorded in Q2FY25. The debt service coverage ratio (DSCR) declined to 0.50 times from 0.75 times in the previous quarter, reflecting the impact of higher debt servicing requirements against current cash flows.

Ratio	Q2FY26	Q1FY26	Q2FY25
Debt-Equity Ratio	0.83	0.45	1.53
Current Ratio	1.48	1.47	1.22
Interest Service Coverage	4.29	3.60	7.84
Operating Margin (%)	15.63%	16.85%	14.36%

Net worth increased to ₹1,771 lakh from ₹1,723 lakh in the previous quarter. The current ratio improved slightly to 1.48 times, indicating adequate short-term liquidity to meet immediate obligations. The interest service coverage ratio improved to 4.29 times from 3.60 times in Q1FY26, suggesting better ability to cover interest expenses from operating profits despite the rise in absolute finance costs.

What the Numbers Show

A key observation from the filing is the concentration risk inherent in Jainex Aamcol’s business model. Gear cutting tools contribute over 93% of the company’s revenue, a figure unchanged from the previous year. This high dependency means that any volatility in the industrial tooling sector directly impacts the company’s financial stability. While revenue growth is evident, the divergence between rising revenue and declining net margins suggests that input cost inflation or pricing pressures are eroding profitability. The increase in other manufacturing and operating expenses, which turned negative in value (-₹106.97 lakh) likely due to accounting adjustments or credits not present in the prior year, also distorts the direct comparison of operational efficiency. Investors should monitor whether the current revenue growth can sustain the elevated debt levels without further compressing margins.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.44%	-5.68%	+6.27%	+0.76%	-25.02%	+163.06%

Jainex Aamcol reported a net profit of ₹139.15 lakh for the financial year ended March 31, 2026 (FY26), marking a substantial increase from ₹34.49 lakh in FY25. The gear cutting tools manufacturer posted revenue from operations of ₹2671.16 lakh, up from ₹2378.73 lakh in the prior year. This performance reflects the successful completion of its expansion project and the commencement of commercial production for new product lines.

The company submitted its annual report pursuant to Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The financial statements were audited by M/s. R K Jagetiya & Co., Chartered Accountants, who issued an unqualified opinion. Statutory auditors confirmed that the internal financial controls were adequate and operating effectively as at March 31, 2026.

Financial Performance

Revenue growth was supported by increased turnover across key segments, particularly gear hobs and milling cutters. EBITDA improved significantly to ₹380.25 lakh from ₹142.51 lakh in FY25. However, profit margins faced pressure from higher interest costs, which rose to ₹62.29 lakh from ₹34.77 lakh, and depreciation expenses that more than doubled to ₹118.25 lakh from ₹64.17 lakh due to new capital assets.

Metric	FY26 (₹ Lakh)	FY25 (₹ Lakh)
Revenue from Operations	2671.16	2378.73
EBITDA	380.25	142.51
Net Profit After Tax	139.15	34.49
Total Assets	3891.97	2267.78

The Board of Directors decided not to recommend any dividend for FY26, opting to conserve funds for future business growth and the next phase of expansion. No amount was transferred to reserves during the year.

Expansion and Operational Updates

Jainex Aamcol substantially completed its expansion project during FY26, which included civil construction and the installation of machinery required to enhance manufacturing capabilities. The project enables the production of new products such as Shaper Cutters, Master Gears, and Skiving Cutters, while improving the quality of Big Module Hobs and Worm Wheel Hobs. Commercial production has commenced for certain products, with remaining lines expected to start in a phased manner.

The company also completed a rights issue during the year, allotting 7,48,169 equity shares at ₹120 per share. The issue price was set against a face value of ₹10 per share. Proceeds from the rights issue, along with internal accruals and loans from promoters and banks, are funding the next phase of expansion, which includes acquiring four overseas machines and two local CNC machines at a cost of approximately ₹10 crore.

What the Numbers Show

The surge in net profit is primarily driven by operational leverage rather than just top-line growth. While revenue increased by approximately 12%, EBITDA nearly tripled, indicating improved operating efficiency and better utilization of fixed costs post-expansion. However, the significant rise in depreciation and finance costs highlights the heavy capital expenditure undertaken. The company’s total assets nearly doubled to ₹3891.97 lakh, reflecting this investment cycle. Foreign exchange earnings stood at ₹540.25 lakh against outgoes of ₹1120.27 lakh, underscoring the import dependency for raw materials or machinery despite export efforts.